DEVENDRA NAVALE,VAPI vs. ITO, WARD DAMAN, DAMAN

The background facts leading to present appeal are such that the assessee is an individual having income mainly from salary. The assessee filed his original return of income of AY 2023-24 declaring a total income of Rs. 20,30,390/- but subsequently filed revised return of income declaring a total income of Rs. 20,30,390/- with a refund claim of Rs. 11,39,450/-. The case of assessee was selected for scrutiny assessment and the Ld. AO issued notices u/s 143(2)/142(1) which were complied with by the assessee. Ultimately, the Ld. AO completed assessment determining total income at Rs. 51,30,205/- as against returned income of Rs. 20,30,390/-. Aggrieved, the assessee carried matter in first-appeal whereupon the Ld. CIT(A) dismissed assessee’s appeal for non-prosecution and upheld AO’s order. Still aggrieved, the assessee has come in present appeal before us.

Ld. AR for assessee submitted that in present case, the Ld. CIT(A) passed ex-parte order dismissing assessee’s first appeal and merely approving the order of Ld. AO, although due to non-prosecution by assessee on the dates of hearing, but the non-prosecution by assessee was due to a bona fide reason as the Ld. CIT(A) fixed hearings during a short span of time-period (on 18.08.2025, 17.11.2025 and 27.11.2025) and the hearing notices were also served through e-mail and not in physical mode. Therefore, Ld. AR prayed, the impugned order of first-appeal passed by Ld.

The Ld. DR for revenue, though not opposing the prayer of the assessee for restoration, submitted that the assessee had remained non- compliant during the proceedings of first-appeal, which constrained the Ld. CIT(A) to pass ex-parte order. It was, therefore, submitted that while restoring the matter, appropriate directions may be issued to ensure strict compliance by the assessee.

Considering the above submissions of parties; having regard to the principle of natural justice and also bearing in mind that no prejudice would be caused to revenue if the present matter is restored at the level of Ld. CIT(A), we restore this matter to the file of Ld. CIT(A) for adjudication afresh, at the risk and responsibility of assessee. The Ld. CIT(A) shall give necessary opportunity of hearing to assessee and pass an appropriate order uninfluenced by his earlier order. The assessee is also directed to remain vigilant and ensure participation in the hearings as may be fixed by Ld. CIT(A) without seeking unnecessary adjournments failing which the Ld.

In result, this appeal is allowed for statistical purposes.